President Barack Obama keeps saying that he saved the auto industry. It makes no sense to me.
General Motors Corp. failed. It went bankrupt and left 900 million shares of stock worthless. If the average price payed for that GM stock was $30 a share, that means that GM bailed on $2.7 billion dollars to John Q. Public.
In addition, GM walked away from many of its legacy benefits. Then the president stepped in, gave the new GM company $500 million to start over and paid the existing CEO his $6 million bonus (even though he had run the company into financial bankruptcy).
Obama appointed his own CEO, who stepped down after six months (but still received a $1 million bonus) and then hired a new CEO, who I am sure will also get a nice bonus irrespective of how the company does.
All of us average citizen stock owners were left with nothing but worthless paper. Kind of interesting in that Ford, Toyota, Nissan and other major auto industry folks didn’t go bankrupt, didn’t get government funding and are still in business and still making a profit. Doesn’t seem like fair competition to me.
If President Obama did really save the auto industry, then I would like to get paid for the old GM stock I own. I would be willing to bet if the government would have left GM alone, some other auto company would have purchased some of the facilities and machinery and produced more vehicles, and made a nice profit.